Investment holdings group PRG Holdings Sdn Bhd (PRGH) is poised to embark on its first affordable housing development in Ipoh, Perak, with the help Syarikat Perumahan Negara Bhd (SPNB) following the acquisition of land parcels within the state.
Recently, the group’s wholly-owned subsidiary Premier Construction Sdn Bhd (PCSB) entered into a mutual agreement with SPNB’s unit, SPNB Aspirasi Sdn Bhd (SASB), and Cash Key (Ipoh) Sdn Bhd (CKISB), who is the registered owner of the 213 parcels of land. The deal would require PRSB the pay the remaining sum of RM8.53 million for the said parcels.
The total land cost for the parcels was initially RM9.98 million, of which SASB has already paid RM2.35 million to landowner CKISB.
In the mutual agreement signed between parties last week, it was decided that an earlier joint development agreement would be terminated and that PCSB would pay the remaining sum in order to jointly develop the parcels with SPNB.
Under the previous agreement, CKISB was to dispose of the land to SASB and subsequently complete the project as SASB’s contractor under the housing scheme known as “Cadangan Pembangunan Rumah Aspirasi Rakyat di Mukim Sungai Terap, Daerah Kinta, Perak.”
SASB had only made part payment, although planning permission had obtained and building, earthwork, road and drainage plans had been approved.
According to PRG group managing director Datuk Lua Choon Hann, the project is in line with the group’s aim to strengthen its presence in the property market by engaging with strategic partners.
The recent agreement marks a formal commitment to jointly develop approximately RM5 billion worth of affordable housing projects.